Exhibit 99.1

FOURTH QUARTER 2007

FINANCIAL SUPPLEMENT

If you need further information, please contact:

Dave Miller, Investor Relations

901-523-4162

dwmiller@firsthorizon.com

TABLE OF CONTENTS
				Page
Performance Highlights				3
Restructuring, Repositioning, and Efficiency Initiatives				5
Consolidated Results
	Income Statement
		Summary Income Statement		6
		Income Statement		7
		Other Income and Other Expense		8
	Balance Sheet
		Period End Balance Sheet		9
		Average and Period End Loans		10
		Average Balance Sheet		11
			Average Balance Sheet: Income & Expense	12
			Average Balance Sheet: Yields & Rates	13
	Mortgage Servicing Rights			14
Credit Quality
		Asset Quality Highlights - Allowance Detail		15
		Asset Quality Highlights - Key Ratios & Metrics		16
		Asset Quality Highlights - Key Portifolios		17
Business Segment Detail
		Segment Highlights		18
		Retail/Commercial Banking		19
		Mortgage Banking		20
			Mortgage Banking: Origination Income	21
			Mortgage Banking: Origination Metrics	22
			Mortgage Banking: Servicing	23
		Capital Markets		24
		Corporate		25
Capital Highlights				26
Glossary of Terms				27
Other Information
This financial supplement contains forward-looking statements involving significant risks and uncertainties.  A number of important
factors could cause actual results to differ materially from those in the forward-looking information.  Those factors include general
economic and financial market conditions, including expectations of and actual timing and amount of interest rate movements including
the slope of the yield curve, competition, customer and investor responses to these conditions, ability to execute business plans,
geopolitical developments, natural disasters, and items mentioned in this financial supplement and in FHN's most recent press release,
as well as critical accounting estimates and other factors described in FHN’s recent filings with the SEC.  FHN disclaims any obligation
to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements included herein
or therein to reflect future events or developments.

PERFORMANCE HIGHLIGHTS
Summary of Fourth Quarter 2007 Significant Items (in millions)
Segment	Item		Income Statement	Pre-Tax	Comments
Retail/Commercial Bank	Loan loss reserves		Provision for loan losses	($156.6)	Increased reserves reflecting higher inherent losses in construction portfolios and high risk geographic areas.
	Merchant Services earn-out gain		Discontinued Operations	$6.8	Gain from earn-out associated with 1Q06 divestiture.  After-tax gain of $4.2 million.
	Consumer lending adjustments		Noninterest income: Other	($9.4)	LOCOM and other loan sale adjustments.
Mortgage	Goodwill impairment		Noninterest expense: Goodwill Impairment	($71.1)	Writing off all goodwill in business following updated valuation, based on strategic cash flow projections and market-to-book values. $40.4 million not tax deductible.
	Adjustment to MSR and other retained interest valuations		Noninterest income: Mortgage Banking	($135.3)	Reduction in values from placing more emphasis on broker price discovery.
	LOCOM on non-conforming loans in warehouse		Noninterest income: Mortgage Banking	($10.9)	Adjustments to carrying values.
	Legal settlement accrual		Noninterest expense: Other: Other	($4.8)	Personnel-related litigation matter.
Corporate	Restructuring, Repositioning & Efficiency Initiatives		Noninterest expense: Various	($35.9)	Expenses from severance & technology projects.  Detailed further on page 5.
	Visa legal matter accrual		Noninterest expense: Other	($55.7)	Associated with proportionate interest in Visa and contingent guarantee of certain litigation matters.  Any expense recognized is expected to reverse upon Visa's completion of its IPO, expected in 2008.
	First Horizon Bank branch divestiture		Noninterest income: Gains on divestitures	$15.7	Completed disposition of 15 First Horizon Bank branches. See page 5.
	Sale of MSR		Noninterest income: Mortgage Banking	($6.4)	Transaction costs for sale of MSR on $7.3 billion of principal balances. See page 5.
	Net securities losses		Noninterest income: Securities (losses)/gains, net	($10.4)	Associated with other equity securities.
(Fourth Quarter 2007 vs. Third Quarter 2007)

Retail/Commercial Banking
- Regional Banking net interest margin of 4.88% for fourth quarter
- Segment net interest margin declined to 3.71% compared to 3.88% in third quarter
	- Reflects increase in nonaccrual loans and not passing all Federal Reserve rate cuts to deposit customers
- Noninterest income decreased 2%
	- No consumer loan sales executed during the current quarter; two sales in third quarter
		- $230.0 million held-for-sale warehouse was transferred to the loan portfolio
	- Partially offset by increases in fees from deposit accounts
- Increased provision for loan losses reflects inherent losses within national construction portfolios
- Noninterest expense increases from losses on owned real estate and reductions in value of low income housing investments
	- Partially offset by lower variable compensation costs from reduced loan originations and effect of efficiency initiatives
- Completed disposition of 15 First Horizon Bank branches
	- 19 additional branches expected to be sold in first quarter 2008
	- Loans of $290 million and deposits of $230 million remain classified as held-for-sale

3

PERFORMANCE HIGHLIGHTS (continued)
(Fourth Quarter 2007 vs. Third Quarter 2007)
Mortgage Banking
- Increased origination income
	- 25.6% decrease in deliveries and 5.5% decrease in originations
	- Gain (loss) on sale margin improved to 5 basis points from (33) basis points
		- Trading losses caused by spread widening on adjustable rate and non-agency eligible production
		- LOCOM adjustments made to reflect current market valuations
- Hedging results negatively impacted earnings by $18 million vs. $22 million positive effect in third quarter
	- Represents effects of capital markets volatility and lower liquidity in certain hedging instruments
		- Resulted in increased transaction costs
- Net interest income declined in line with decrease in average warehouse balance
	- Partially offset by increase in warehouse spread
- Value of MSR and other retained interests reduced by $135.3 million from placing more emphasis on broker price discovery
- Decrease in servicing runoff to $40.9 million for third quarter from $49.0 million in prior quarter
	- Results from decreased opportunity for non-conforming loans to refinance due to increased interest rates
- Noninterest expense increased to $174.3 million in fourth quarter from $108.6 million in third quarter
	- $71.1 million impairment of goodwill in fourth quarter
	- Recognition of $4.8 million legal settlement in current quarter
	- Slightly offset by effects of lower production volumes and efficiency initiatives
Capital Markets
- Fixed income revenues were $77.1 million in current quarter compared to $46.0 million in prior quarter
	- Increase in activity during fourth quarter as Federal Reserve lowered rates resulting in a steeper yield curve
- Other product revenues increased to $23.8 million from $15.8 million
	- Small pooled trust preferred transaction executed at minimal profitability due to illiquidity in the credit markets
- Increase in noninterest expense resulting from higher production levels
Corporate Segment
- $55.7 million of expense recognized related to a contingent guarantee for certain Visa litigation matters
	- Accrued as FHN's pro rata share of the expected resolution of these items
	- Expense recognized is expected to reverse upon Visa's completion of its IPO, which is expected in 2008
- $26.6 million recognized for restructuring, repositioning and efficiency initiatives (detail on next page)
	- Current quarter included $35.9 million of expenses, including $17.4 million of asset impairments
	- $15.7 million gain recognized on disposition of 15 First Horizon Bank branches
	- $6.4 million of transaction costs from sale of mortgage servicing rights presented as reduction of Mortgage Banking income
	- Prior quarter included $32.8 million of expenses for these initiatives
- Equity securities losses of $10.4 million in current quarter for impairment of other equity securities
Taxes
- Negatively affected by $40.4 million of non-deductible goodwill associated with Mortgage segment goodwill impairment
Asset Quality
- Provision increased to $156.6 million in the current quarter compared to $43.3 million in third quarter
	- Thorough review of portfolios and reserve models
	- Increased loss probability and severity assessments in certain higher risk housing markets
	(e.g., Florida, California, Virginia, Arizona, Georgia and Nevada) and certain higher risk product structures
- Tightened underwriting standards for one-time close and homebuilder finance products
- Conducted intensive asset-by-asset commercial real estate portfolio reviews and increased watch list management focus
- Redeployed resources to assist work out process
- Net charge-offs were 93 basis points driven by one-time close and homebuilder loans in national footprint
- NPAs increased to 166 basis points from 113 basis points reflecting construction loan deterioration in national markets
- Allowance as a percentage of loans ratio increased to 155 basis points from 108 basis points in prior quarter
Capital
- Declared quarterly dividend of $.20 per share
	- Provides longer term flexibility to adjust the payout or repurchase shares
- Current Ratios (estimated based on period end balances)
	- 6.0% for tangible common equity to risk weighted assets
	- 8.0% for Tier I
	- 12.5% for Total Capital

4

EFFICIENCY AND RESTRUCTURING INITIATIVES
Unaudited
(Thousands)
Summary of Key Initiatives
				Expected Annualized
	Area	Key Components		Pre-Tax Benefit
	Enterprise Efficiency Initiatives	Organization and compensation redesign		$175 Million
	(3 Phases)	Procurement & multisourcing
		Repositioning non-core businesses
		Other (facilities, process streamlining, loan divestiture)
	First Horizon Banks Divestiture	Selling 34 full-service locations in VA, MD, GA, TX		$30 Million
	Mortgage Restructuring	Eliminating bottom half of retail sales force
		Reducing management & wholesale AEs
		Decreasing support staff and back-office costs
		Closing over 60 offices
				$40 Million
	Downsizing National Lending	Reducing consumer and construction sales forces
		Decreasing support staff and back-office costs
		Cutting network of national FSMs

Benefits			Estimated Benefits by Business Line
		Expected Timing to Fully Realize	Retail/Comm.		Capital
	Area	Annual Pre-Tax Benefits	Bank	Mortgage	Markets	Corporate
	Enterprise Efficiency Initiatives	Approximately $150 miIlion in annual benefits	40%	40%	15%	5%
		in 4Q07 run-rate; remainder by 1Q08.
	First Horizon Banks Divestiture	By 2Q08, with some in 1Q08	100%
	Mortgage Restructuring	By end of 4Q07		100%
	Downsizing National Lending	Majority by 4Q07; remainder over 2008	100%

Charges for Restructuring, Repositioning, and Efficiency
	By Income Statement Impact	4Q07		3Q07		2Q07
	Provision for loan losses	-		-		7,700
	Noninterest income
	Mortgage banking	(6,400	)	-		-
	Gains on divestitures	15,700		-		-
	Noninterest expense
	Employee compensation, incentives, and benefits	8,400		9,300		8,000
	Occupancy	5,500		5,100		3,700
	Operations services	400		-		-
	Equipment rentals, depreciation, and maintenance	500		800		5,200
	All other expense	21,100		17,600		14,700
	Total Income before income taxes	(26,600	)	(32,800	)	(39,300	)

5

CONSOLIDATED SUMMARY INCOME STATEMENT
Quarterly, Unaudited
																	4Q07 Change vs.
(Thousands)	4Q07			3Q07			2Q07			1Q07			4Q06				3Q07			4Q06
Net interest income	$	225,987		$	237,804		$	239,432		$	237,419		$	245,997				(5	)%		(8	)%
Noninterest income		103,429			203,475			281,313			272,915			313,342				(49	)%		(67	)%
Securities (losses)/gains, net		(10,442	)		-			(1,014	)		10,273			3,002			NM			NM
Total revenue		318,974			441,279			519,731			520,607			562,341				(28	)%		(43	)%
Noninterest expense		561,559			421,622			457,240			403,012			431,630				33	%		30	%
Provision		156,519			43,352			44,408			28,486			22,983				261	%		581	%
Pretax (loss)/income		(399,104	)		(23,695	)		18,083			89,109			107,728			NM			NM
(Benefit)/provision for income taxes		(146,342	)		(9,330	)		(3,861	)		18,802			31,448			NM			NM
(Loss)/income from continuing operations		(252,762	)		(14,365	)		21,944			70,307			76,280			NM			NM
Income from discontinued operations, net of tax		4,137			209			179			240			187			NM			NM
Net (loss)/income	$	(248,625	)	$	(14,156	)	$	22,123		$	70,547		$	76,467			NM			NM
Common Stock Data
Diluted EPS from continuing operations	$	(2.00	)	$	(.11	)	$	.17		$	.55		$	.60			NM			NM
Diluted EPS		(1.97	)		(.11	)		.17			.55			.60			NM			NM
Diluted shares		126,089			126,058			128,737			128,704			127,784				*			(1	)%
Period-end shares outstanding		126,366			126,388			126,237			125,749			124,866				*			1	%
Dividends declared per share	$	.45		$	.45		$	.45		$	.45		$	.45				-			-
Key Ratios & Other
Return on average assets		(2.65	)%		(.15	)%		.23	%		.74	%		.77	%
Return on average equity		(42.52	)%		(2.31	)%		3.57	%		11.61	%		12.08	%
Net interest margin		2.77	%		2.87	%		2.79	%		2.84	%		2.85	%
Tax rate	NM			NM			NM				21.10	%		29.19	%
Efficiency ratio		176.05	%		95.55	%		87.98	%		77.41	%		76.76	%
FTE employees		9,941			11,052			11,903			12,018			12,131				(10	)%		(18	)%

NM - Not meaningful

* Amount is less than one percent.

6

CONSOLIDATED INCOME STATEMENT
Quarterly, Unaudited
															4Q07 Change vs.
(Thousands)	4Q07			3Q07			2Q07			1Q07		4Q06			3Q07			4Q06
Interest income	$	545,136		$	582,735		$	594,903		$	583,185	$	604,562			(6	)%		(10	)%
Less interest expense		319,149			344,931			355,471			345,766		358,565			(7	)%		(11	)%
Net interest income		225,987			237,804			239,432			237,419		245,997			(5	)%		(8	)%
Provision for loan losses		156,519			43,352			44,408			28,486		22,983			261	%		581	%
Net interest income after
provision for loan losses		69,468			194,452			195,024			208,933		223,014			(64	)%		(69	)%
Noninterest income:
Capital markets		98,482			63,722			85,054			87,113		92,809			55	%		6	%
Deposit transactions
and cash management		47,971			44,863			43,079			39,358		43,317			7	%		11	%
Mortgage banking  (a)(c)(d)		(113,965	)		39,022			71,300			73,097		87,524		NM			NM
Trust services and investment
management		10,097			9,922			10,628			9,688		10,424			2	%		(3	)%
Insurance commissions		7,529			6,747			7,674			9,789		8,951			12	%		(16	)%
Revenue from loan sales and securitizations		(171	)		4,774			9,615			9,663		16,276		NM			NM
Securities (losses)/gains, net		(10,442	)		-			(1,014	)		10,273		3,002		NM			NM
Gains on divestitures (a)		15,695			-			-			-		-		NM			NM
Other  (c)		37,791			34,425			53,963			44,207		54,041			10	%		(30	)%
Total noninterest income		92,987			203,475			280,299			283,188		316,344			(54	)%		(71	)%
Adjusted gross income after
provision for loan losses		162,455			397,927			475,323			492,121		539,358			(59	)%		(70	)%
Noninterest expense:
Employee compensation,
incentives and benefits (a)		226,905			236,683			258,191			246,343		257,397			(4	)%		(12	)%
Occupancy  (a)		34,209			34,778			33,402			28,784		29,298			(2	)%		17	%
Operations services (a)		20,148			18,774			17,457			17,821		17,550			7	%		15	%
Equipment rentals, depreciation
and maintenance   (a)		16,252			17,270			21,791			17,613		17,867			(6	)%		(9	)%
Communications and courier		10,664			10,959			10,746			11,540		11,978			(3	)%		(11	)%
Amortization of intangible assets		2,864			2,647			2,623			2,825		2,460			8	%		16	%
Goodwill impairment		71,074			13,010			-			-		-		NM			NM
Other  (a)(b)		179,443			87,501			113,030			78,086		95,080			105	%		89	%
Total noninterest expense		561,559			421,622			457,240			403,012		431,630			33	%		30	%
Pretax (loss)/income		(399,104	)		(23,695	)		18,083			89,109		107,728		NM			NM
(Benefit)/provision for income taxes		(146,342	)		(9,330	)		(3,861	)		18,802		31,448		NM			NM
(Loss)/income from continuing operations	$	(252,762	)		(14,365	)		21,944			70,307		76,280		NM			NM
Income from discontinued operations,
net of tax		4,137			209			179			240		187		NM			NM
Net (loss)/income	$	(248,625	)	$	(14,156	)	$	22,123		$	70,547	$	76,467		NM			NM

* Amount is less than one percent.
NM - Not meaningful
4Q07 Key Impacts
(a)	Includes a portion of net charges for $26.6 million, see Restructuring, Repositioning and Efficiency Initiatives page for further details
(b)	Includes amounts related to a legal settlement accrual and estimated legal matter accruals related to VISA
(c)	Includes LOCOM and other loan sale adjustments
(d)	Includes adjustment to MSR and other retained interest valuations

7

OTHER INCOME AND OTHER EXPENSE
Quarterly, Unaudited
														4Q07 Change vs.
(Thousands)	4Q07			3Q07			2Q07		1Q07		4Q06			3Q07			4Q06
Other Income
Brokerage management fees and
commissions	$	8,747		$	9,189		$	10,263	$	9,631	$	9,434			(5	)%		(7	)%
Bank owned life insurance		6,697			6,260			6,250		5,965		6,054			7	%		11	%
Bankcard income		6,221			6,329			6,319		6,005		6,386			(2	)%		(3	)%
Other service charges		3,357			3,581			3,677		3,681		3,556			(6	)%		(6	)%
Remittance processing		3,450			3,171			3,330		3,500		3,576			9	%		(4	)%
Reinsurance fees		2,794			2,418			2,056		1,784		2,075			16	%		35	%
ATM interchange fees		2,224			2,200			2,131		1,917		1,801			1	%		23	%
Deferred compensation		(1,667	)		526			7,603		1,265		8,188		NM			NM
Letter of credit		1,759			1,864			1,495		1,620		1,712			(6	)%		3	%
Electronic banking fees		1,636			1,631			1,639		1,655		1,505			*			9	%
Check clearing fees		1,125			1,275			1,284		1,212		1,386			(12	)%		(19	)%
Federal flood certifications		1,084			1,207			1,383		1,123		1,121			(10	)%		(3	)%
Other  (c)		364			(5,226	)		6,533		4,849		7,247		NM				(95	)%
Total	$	37,791		$	34,425		$	53,963	$	44,207	$	54,041			10	%		(30	)%
Other Expense
Legal and professional fees (a)	$	17,629		$	13,532		$	14,130	$	11,591	$	12,046			30	%		46	%
Computer software   (a)		26,185			9,334			9,237		9,186		8,608			181	%		204	%
Advertising and public relations (a)		10,297			10,475			11,312		10,262		11,162			(2	)%		(8	)%
Travel and entertainment  (a)		5,829			7,065			7,391		5,814		8,518			(17	)%		(32	)%
Low income housing expense		6,605			4,483			5,082		4,752		6,056			47	%		9	%
Contract employment		5,202			5,770			5,549		5,022		5,836			(10	)%		(11	)%
Distributions on preferred stock
of subsidiary		4,679			4,761			4,701		4,658		4,769			(2	)%		(2	)%
Foreclosed real estate		8,871			1,393			3,492		2,292		1,675			537	%		430	%
Supplies		3,496			3,382			3,430		3,601		3,177			3	%		10	%
Loan closing costs		1,279			4,857			3,623		3,024		2,297			(74	)%		(44	)%
Customer relations		2,834			2,605			2,420		1,942		2,287			9	%		24	%
Other insurance and taxes		2,684			1,751			2,003		2,403		2,265			53	%		18	%
Employee training and dues		1,183			1,703			2,028		1,648		1,533			(31	)%		(23	)%
Fed services fees		1,463			1,540			1,599		1,445		1,445			(5	)%		1	%
Complimentary check expense		1,206			1,237			1,324		1,291		1,329			(3	)%		(9	)%
Loan insurance expense		1,073			1,123			1,167		1,247		721			(4	)%		49	%
Bank examination costs		1,142			1,141			1,091		1,130		1,102			*			4	%
Deposit insurance premium		1,223			615			606		883		765			99	%		60	%
Other  (a)(b)		76,563			10,734			32,845		5,895		19,489			613	%		293	%
Total	$	179,443		$	87,501		$	113,030	$	78,086	$	95,080			105	%		89	%

* Amount is less than one percent.
NM - Not meaningful
4Q07 Key Impacts
(a)	Includes a portion of net charges for $21.1 million, see Restructuring, Repositioning and Efficiency Initiatives
(b)	Includes amounts related to a legal settlement accrual and estimated legal matter accruals related to VISA
(c)	Includes LOCOM and other loan sale adjustments

8

CONSOLIDATED PERIOD-END BALANCE SHEET
Quarterly, Unaudited
																4Q07 Change vs.
(Thousands)	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06
Assets
Investment securities	$	3,032,791		$	3,076,360		$	3,374,853		$	3,310,960		$	3,923,484			(1	)%		(23	)%
Loans held for sale		3,461,712			2,900,464			3,330,489			2,921,629			2,873,577			19	%		20	%
Loans held for sale-divestiture (a)		289,878			565,492			-			-			-			(49	)%	NM
Loans, net of unearned income		22,103,516			21,973,004			22,382,303			22,268,190			22,104,905			1	%		*
Federal funds sold and securities
purchased under agreements to resell		1,089,495			1,096,624			1,121,052			1,757,365			1,202,537			(1	)%		(9	)%
Interest bearing deposits with other financial institutions		39,422			30,993			58,241			15,739			18,037			27	%		119	%
Trading securities		1,768,763			1,734,653			2,291,704			2,443,342			2,230,745			2	%		(21	)%
Total earning assets		31,785,577			31,377,590			32,558,642			32,717,225			32,353,285			1	%		(2	)%
Cash and due from banks		1,170,220			936,707			799,428			861,534			943,555			25	%		24	%
Capital markets receivables		524,419			1,219,720			1,240,456			1,144,135			732,282			(57	)%		(28	)%
Mortgage servicing rights, net		1,159,820			1,470,589			1,522,966			1,540,041			1,533,942			(21	)%		(24	)%
Goodwill		192,408			267,228			279,825			275,582			275,582			(28	)%		(30	)%
Other intangible assets, net		56,907			58,738			61,947			61,672			64,530			(3	)%		(12	)%
Premises and equipment, net		399,305			411,515			438,807			445,301			451,708			(3	)%		(12	)%
Real estate acquired by foreclosure		103,982			75,656			67,499			68,613			63,519			37	%		64	%
Discontinued assets		-			-			-			358			416		NM			NM
Allowance for loan losses		(342,341	)		(236,611	)		(229,919	)		(220,806	)		(216,285	)		45	%		58	%
Other assets		1,949,308			1,874,497			1,654,433			1,935,111			1,715,725			4	%		14	%
Other assets-divestiture (a)		15,856			22,623			-			-			-			(30	)%	NM
Total assets	$	37,015,461		$	37,478,252		$	38,394,084		$	38,828,766		$	37,918,259			(1	)%		(2	)%
Liabilities and Shareholders' Equity
Deposits
Savings	$	3,872,684		$	3,592,732		$	3,520,757		$	3,607,674		$	3,354,180			8	%		15	%
Other interest-bearing deposits		1,946,933			1,674,624			1,822,076			1,941,422			1,969,700			16	%		(1	)%
Time deposits		2,826,301			2,822,792			2,885,307			2,876,257			2,924,050			*			(3	)%
Interest bearing deposits-divestiture (a)		189,051			361,368			-			-			-			(48	)%	NM
Total interest-bearing core deposits		8,834,969			8,451,516			8,228,140			8,425,353			8,247,930			5	%		7	%
Noninterest-bearing deposits		5,026,417			4,928,233			5,516,735			5,506,791			5,447,673			2	%		(8	)%
Noninterest-bearing deposits-divestiture (a)		28,750			72,404			-			-			-			(60	)%	NM
Total core deposits		13,890,136			13,452,153			13,744,875			13,932,144			13,695,603			3	%		1	%
Certificates of deposit $100,000 and more		3,129,532			5,142,169			8,016,808			8,559,807			6,517,629			(39	)%		(52	)%
Certificates of deposit $100,000 and more -divestiture (a)		12,617			41,037			-			-			-			(69	)%	NM
Total deposits		17,032,285			18,635,359			21,761,683			22,491,951			20,213,232			(9	)%		(16	)%
Federal funds purchased and securities
sold under agreements to repurchase		4,829,597			4,039,827			3,841,251			3,173,476			4,961,799			20	%		(3	)%
Federal funds purchased and securities
sold under agreements to repurchase - divestiture (a)		20,999			-			-			-			-		NM			NM
Trading liabilities		556,144			543,060			658,533			678,796			789,957			2	%		(30	)%
Commercial paper and other short-term borrowings		3,422,995			2,396,316			246,815			819,768			1,258,513			43	%		172	%
Term borrowings		6,027,967			5,980,513			5,828,138			5,968,789			5,243,961			1	%		15	%
Other collateralized borrowings		800,450			820,040			821,966			559,226			592,399			(2	)%		35	%
Total long-term debt		6,828,417			6,800,553			6,650,104			6,528,015			5,836,360			*			17	%
Capital markets payables		586,358			1,053,349			1,144,029			1,088,340			799,489			(44	)%		(27	)%
Discontinued liabilities		-			-			-			32,608			6,966		NM			NM
Other liabilities		1,305,868			1,253,295			1,332,910			1,205,859			1,294,283			4	%		1	%
Other liabilities-divestiture (a)		1,925			39,389			-			-			-			(95	)%	NM
Total liabilities		34,584,588			34,761,148			35,635,325			36,018,813			35,160,599			(1	)%		(2	)%
Preferred stock of subsidiary		295,277			295,277			295,277			295,277			295,270			-			*
Shareholders' Equity
Common stock		78,979			78,992			78,898			78,593			78,041			*			1	%
Capital surplus		361,826			360,016			352,138			341,491			312,521			1	%		16	%
Undivided profits		1,742,892			2,048,689			2,120,014			2,155,007			2,144,276			(15	)%		(19	)%
Accumulated other comprehensive (loss)/income, net		(48,101	)		(65,870	)		(87,568	)		(60,415	)		(72,448	)		(27	)%		(34	)%
Total shareholders' equity		2,135,596			2,421,827			2,463,482			2,514,676			2,462,390			(12	)%		(13	)%
Total liabilities and shareholders' equity	$	37,015,461		$	37,478,252		$	38,394,084		$	38,828,766		$	37,918,259			(1	)%		(2	)%

Certain previously reported amounts have been reclassified to agree with current presentation.

NM - Not meaningful

* Amount is less than one percent.

(a)   Associated with the sale of First Horizon Bank branches

9

CONSOLIDATED AVERAGE AND PERIOD-END LOANS
Quarterly, Unaudited
												4Q07 Change vs.
(Thousands)	4Q07		3Q07		2Q07		1Q07		4Q06			3Q07			4Q06
Average Loans (Net)
Commercial
Commercial, financial and industrial	$	6,957,498	$	7,061,103	$	7,292,380	$	7,131,102	$	6,903,708			(1	)%		1	%
Real estate commercial  (a)		1,301,866		1,363,363		1,260,196		1,157,711		1,187,431			(5	)%		10	%
Real estate construction  (b)		2,825,210		2,875,296		2,919,522		2,843,263		2,741,118			(2	)%		3	%
Total commercial loans		11,084,574		11,299,762		11,472,098		11,132,076		10,832,257			(2	)%		2	%
Retail
Real estate residential   (c)		7,605,345		7,601,422		7,854,784		7,908,039		8,211,506			*			(7	)%
Real estate construction  (d)		2,096,561		2,144,902		2,095,021		2,045,952		2,081,885			(2	)%		1	%
Other retail		144,116		149,714		149,976		153,651		160,366			(4	)%		(10	)%
Credit card receivables		201,153		194,376		194,732		195,209		201,092			3	%		*
Real estate loans pledged against
other collateralized borrowings   (e)		779,013		808,247		543,771		572,284		406,926			(4	)%		91	%
Total retail loans		10,826,188		10,898,661		10,838,284		10,875,135		11,061,775			(1	)%		(2	)%
Total loans, net of unearned income	$	21,910,762	$	22,198,423	$	22,310,382	$	22,007,211	$	21,894,032			(1	)%		*
Period-End Loans (Net)
Commercial
Commercial, financial and industrial	$	7,140,087	$	6,978,643	$	7,218,582	$	7,371,873	$	7,201,009			2	%		(1	)%
Real estate commercial  (a)		1,294,922		1,326,261		1,389,963		1,144,086		1,136,590			(2	)%		14	%
Real estate construction  (b)		2,753,475		2,828,545		2,830,856		2,931,183		2,753,458			(3	)%		*
Total commercial loans		11,188,484		11,133,449		11,439,401		11,447,142		11,091,057			*			1	%
Retail
Real estate residential   (c)		7,791,885		7,544,048		7,614,887		7,856,197		7,973,313			3	%		(2	)%
Real estate construction  (d)		2,008,289		2,160,593		2,158,775		2,073,293		2,085,133			(7	)%		(4	)%
Other retail		144,019		144,526		149,157		151,959		161,178			*			(11	)%
Credit card receivables		204,812		196,967		194,715		187,658		203,307			4	%		1	%
Real estate loans pledged against
other collateralized borrowings   (e)		766,027		793,421		825,368		551,941		590,917			(3	)%		30	%
Total retail loans		10,915,032		10,839,555		10,942,902		10,821,048		11,013,848			1	%		(1	)%
Total loans, net of unearned income	$	22,103,516	$	21,973,004	$	22,382,303	$	22,268,190	$	22,104,905			1	%		*

* Amount is less than one percent.
(a)	Includes nonconstruction income property loans
(b)	Includes homebuilder, condominium, and income property construction loans
(c)	Includes home equity loans and lines of credit
(d)	Includes one-time close product
(e)	Includes on balance sheet securitizations of home equity loans

10

CONSOLIDATED AVERAGE BALANCE SHEET
Quarterly, Unaudited
																4Q07 Change vs.
(Thousands)	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06
Assets:
Earning assets:
Loans, net of unearned income*	$	21,910,762		$	22,198,423		$	22,310,382		$	22,007,211		$	21,894,032			(1	)%		**
Loans held for sale		3,337,237			3,963,650			4,087,446			3,646,252			3,796,828			(16	)%		(12	)%
Loans held for sale-divestiture (a)		467,424			-			-			-			-		NM			NM
Investment securities:
U.S. Treasuries		36,062			151,831			156,865			50,899			50,891			(76	)%		(29	)%
U.S. government agencies		2,787,078			2,836,619			3,005,463			3,513,737			3,652,056			(2	)%		(24	)%
States and municipalities		1,740			1,750			1,769			1,769			1,771			(1	)%		(2	)%
Other		230,808			237,291			232,850			284,625			279,353			(3	)%		(17	)%
Total investment securities		3,055,688			3,227,491			3,396,947			3,851,030			3,984,071			(5	)%		(23	)%
Capital markets securities inventory		1,934,055			1,810,703			2,546,668			2,409,211			2,514,046			7	%		(23	)%
Mortgage banking trading securities		527,453			545,201			528,457			331,800			327,842			(3	)%		61	%
Other earning assets:
Federal funds sold and securities
purchased under agreements to resell		1,237,957			1,224,193			1,442,951			1,519,375			1,810,935			1	%		(32	)%
Interest bearing deposits with other financial institutions		28,968			41,118			32,310			19,666			18,091			(30	)%		60	%
Total other earning assets		1,266,925			1,265,311			1,475,261			1,539,041			1,829,026			**			(31	)%
Total earning assets		32,499,544			33,010,779			34,345,161			33,784,545			34,345,845			(2	)%		(5	)%
Allowance for loan losses		(246,916	)		(236,188	)		(229,157	)		(223,932	)		(213,569	)		5	%		16	%
Cash and due from banks		846,793			788,636			804,816			845,987			796,227			7	%		6	%
Capital markets receivables		182,358			141,519			165,433			137,536			154,908			29	%		18	%
Premises and equipment, net		407,212			435,480			443,428			449,283			446,556			(6	)%		(9	)%
Other assets		3,540,575			3,613,812			3,540,463			3,653,625			3,797,814			**			(7	)%
Other assets - divestiture (a)		20,868			-			-			-			-		NM			NM
Total assets	$	37,250,434		$	37,754,038		$	39,070,144		$	38,647,044		$	39,327,781			(1	)%		(5	)%
Liabilities and shareholders' equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Interest bearing deposits - divestiture (a)		292,615			-			-			-			-		NM			NM
Other interest-bearing deposits		1,685,749			1,777,982			1,892,479			1,927,573			1,792,484			(5	)%		(6	)%
Savings		3,749,222			3,475,981			3,538,198			3,413,592			3,327,576			8	%		13	%
Time deposits		2,850,719			2,913,872			2,874,932			2,893,963			2,921,197			(2	)%		(2	)%
Total interest-bearing core deposits		8,578,305			8,167,835			8,305,609			8,235,128			8,041,257			5	%		7	%
Certificates of deposit $100,000 and more		4,464,070			6,802,371			8,271,191			8,040,937			9,820,358			(34	)%		(55	)%
Certificates of deposit $100,000 & more - divestiture (a)		30,499			-			-			-			-		NM			NM
Federal funds purchased and securities
sold under agreements to repurchase		4,936,968			4,964,072			4,967,888			4,505,777			3,888,492			(1	)%		27	%
Federal funds purchased and securities
sold under agreements to repurchase - divestiture (a)		33,370			-			-			-			-		NM			NM
Capital markets trading liabilities		812,969			773,576			1,054,718			1,166,790			1,322,664			5	%		(39	)%
Commercial paper and other short-term
borrowings		2,651,882			1,165,801			560,721			987,898			889,802			127	%		198	%
Long term debt:
Term borrowings		5,981,215			5,837,370			5,887,063			5,807,925			5,307,502			2	%		13	%
Other collateralized borrowings		813,075			807,143			550,604			581,030			411,466			1	%		98	%
Total long-term debt		6,794,290			6,644,513			6,437,667			6,388,955			5,718,968			2	%		19	%
Total interest-bearing liabilities		28,302,353			28,518,168			29,597,794			29,325,485			29,681,541			(1	)%		(5	)%
Noninterest-bearing deposits		4,838,363			5,096,766			5,304,752			5,104,695			5,293,435			(5	)%		(9	)%
Other noninterest-bearing deposits-divestiture (a)		54,928			-			-			-			-		NM			NM
Capital markets payables		173,351			139,170			182,960			222,607			247,738			25	%		(30	)%
Other liabilities		1,262,345			1,276,262			1,206,237			1,235,077			1,299,041			(1	)%		(3	)%
Other liabilities-divestiture (a)		3,885			-			-			-			-		NM			NM
Preferred stock of subsidiary		295,277			295,277			295,277			295,277			295,274			-			**
Shareholders' equity		2,319,932			2,428,395			2,483,124			2,463,903			2,510,752			(4	)%		(8	)%
Total liabilities and shareholders' equity	$	37,250,434		$	37,754,038		$	39,070,144		$	38,647,044		$	39,327,781			(1	)%		(5	)%

 * Includes loans on nonaccrual status.

** Amount is less than one percent.

NM - Not meaningful

(a)   Associated with the sale of First Horizon Bank branches

11

CONSOLIDATED AVERAGE BALANCE SHEET: INCOME & EXPENSE
Quarterly, Unaudited
																4Q07 Change vs.
(Thousands)	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06
Assets:
Earning assets:
Loans, net of unearned income*	$	385,027		$	413,376		$	413,340		$	410,512		$	417,262			(7	)%		(8	)%
Loans held for sale		62,249			66,570			65,923			58,845			63,852			(6	)%		(3	)%
Investment securities:
U.S. Treasuries		434			1,856			1,853			636			646			(77	)%		(33	)%
U.S. government agencies		39,027			40,293			42,474			50,221			52,107			(3	)%		(25	)%
States and municipalities		4			4			4			4			4			-			-
Other		2,904			2,838			2,776			3,514			3,527			2	%		(18	)%
Total investment securities		42,369			44,991			47,107			54,375			56,284			(6	)%		(25	)%
Capital markets securities inventory		25,261			25,321			34,087			30,297			34,251			**			(26	)%
Mortgage banking trading securities		16,436			16,647			16,029			10,317			9,895			(1	)%		66	%
Other earning assets:
Federal funds sold and securities
purchased under agreements to resell		13,485			15,297			18,142			18,821			23,080			(12	)%		(42	)%
Interest bearing deposits with other financial institutions		450			705			410			260			230			(36	)%		96	%
Total other earning assets		13,935			16,002			18,552			19,081			23,310			(13	)%		(40	)%
Total earning assets/interest income	$	545,277		$	582,907		$	595,038		$	583,427		$	604,854			(6	)%		(10	)%
Allowance for loan losses
Cash and due from banks
Capital markets receivables
Premises and equipment, net
Other assets
Total assets
Liabilities and shareholders' equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Other interest-bearing deposits	$	5,976		$	6,179		$	6,808		$	6,889		$	6,006			(3	)%		**
Savings		30,864			29,140			29,919			26,031			26,253			6	%		18	%
Time deposits		35,234			34,745			33,555			33,037			33,733			1	%		4	%
Total interest-bearing core deposits		72,074			70,064			70,282			65,957			65,992			3	%		9	%
Certificates of deposit $100,000 and more		59,851			92,556			110,630			106,276			132,938			(35	)%		(55	)%
Federal funds purchased and securities
sold under agreements to repurchase		52,635			60,287			61,745			54,379			46,321			(13	)%		14	%
Capital markets trading liabilities		10,588			10,295			14,272			16,361			18,560			3	%		(43	)%
Commercial paper and other short-term
borrowings		30,229			14,827			7,187			12,785			12,099			104	%		150	%
Long term debt:
Term borrowings		82,870			85,241			83,529			81,834			76,607			(3	)%		8	%
Other collateralized borrowings		10,902			11,661			7,826			8,174			6,048			(7	)%		80	%
Total long-term debt		93,772			96,902			91,355			90,008			82,655			(3	)%		13	%
Total interest-bearing liabilities/interest expense	$	319,149		$	344,931		$	355,471		$	345,766		$	358,565			(7	)%		(11	)%
Noninterest-bearing deposits
Capital markets payables
Other liabilities
Preferred stock of subsidiary
Shareholders' equity
Total liabilities and shareholders' equity
Net interest income-tax equivalent basis	$	226,128		$	237,976		$	239,567		$	237,661		$	246,289			(5	)%		(8	)%
Fully taxable equivalent adjustment		(141	)		(172	)		(135	)		(242	)		(292	)		(18	)%		(52	)%
Net interest income	$	225,987		$	237,804		$	239,432		$	237,419		$	245,997			(5	)%		(8	)%

* Includes loans on nonaccrual status.

** Amount is less than one percent.

Income amounts are adjusted to a fully taxable equivalent.  Earning assets income is expressed net of unearned income.

NM - Not meaningful

Certain previously reported amounts have been reclassified to agree with current presentation.

12

CONSOLIDATED AVERAGE BALANCE SHEET: YIELDS & RATES
Quarterly, Unaudited
																4Q07 Change vs.
(Thousands)	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07	4Q06
Assets:
Earning assets:
Loans, net of unearned income*		6.98	%		7.39	%		7.43	%		7.56	%		7.56	%
Loans held for sale		6.54			6.72			6.45			6.46			6.73
Investment securities:
U.S. Treasuries		4.77			4.85			4.74			5.06			5.04
U.S. government agencies		5.60			5.68			5.65			5.72			5.71
States and municipalities		.82			.83			.98			.97			.98
Other		5.03			4.78			4.77			4.94			5.05
Total investment securities		5.55			5.57			5.55			5.65			5.65
Capital markets securities inventory		5.22			5.59			5.35			5.03			5.45
Mortgage banking trading securities		12.46			12.21			12.13			12.44			12.07
Other earning assets:
Federal funds sold and securities
purchased under agreements to resell		4.32			4.96			5.04			5.02			5.06
Interest bearing deposits with other financial institutions		6.17			6.80			5.10			5.35			5.04
Total other earning assets		4.36			5.02			5.04			5.03			5.06
Total earning assets/interest income		6.67	%		7.02	%		6.94	%		6.97	%		7.00	%
Allowance for loan losses
Cash and due from banks
Capital markets receivables
Premises and equipment, net
Other assets
Total assets
Liabilities and shareholders' equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Other interest-bearing deposits		1.33	%		1.38	%		1.44	%		1.45	%		1.33	%
Savings		3.19			3.33			3.39			3.09			3.13
Time deposits		4.73			4.73			4.68			4.63			4.58
Total interest-bearing core deposits		3.33			3.40			3.39			3.25			3.26
Certificates of deposit $100,000 and more		5.28			5.40			5.36			5.36			5.37
Federal funds purchased and securities
sold under agreements to repurchase		4.20			4.82			4.99			4.89			4.73
Capital markets trading liabilities		5.17			5.28			5.43			5.69			5.57
Commercial paper and other short-term
borrowings		4.52			5.05			5.14			5.25			5.39
Long term debt:
Term borrowings		5.55			5.85			5.68			5.64			5.78
Other collateralized borrowings		5.36			5.78			5.69			5.63			5.88
Total long-term debt		5.52			5.84			5.68			5.64			5.79
Total interest-bearing liabilities/interest expense		4.49	%		4.81	%		4.81	%		4.77	%		4.80	%
Noninterest-bearing deposits
Capital markets payables
Other liabilities
Preferred stock of subsidiary
Shareholders' equity
Total liabilities and shareholders' equity
Net interest spread		2.18	%		2.21	%		2.13	%		2.20	%		2.20	%
Effect of interest-free sources used to fund
earning assets		.59			.66			.66			.64			.65
Net interest margin		2.77	%		2.87	%		2.79	%		2.84	%		2.85	%

* Includes loans on nonaccrual status.

Yields are adjusted to a fully taxable equivalent.  Earning assets yields are expressed net of unearned income.

Rates are expressed net of unamortized debenture cost for long-term debt.  Net interest margin is computed using total net interest income.

Certain previously reported amounts have been reclassified to agree with current presentation.

13

MORTGAGE SERVICING RIGHTS
Quarterly, Unaudited
																4Q07 Change vs.
(Thousands)	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06
First Liens
Fair value beginning balance	$	1,429,245		$	1,481,727		$	1,500,337		$	1,495,215		$	1,464,360			(4	)%		(2	)%
Addition of mortgage servicing rights		67,300			97,084			100,550			84,707			86,306
Reductions due to loan payments		(40,930	)		(48,964	)		(62,661	)		(61,698	)		(66,937	)
Reductions due to sale		(96,502	)		-			-			-			-
Changes in fair value due to:
Changes in valuation model inputs
or assumptions (a)		(236,695	)		(100,602	)		118,048			(17,833	)		11,601
Reclassification to trading assets		-			-			(174,547	)		-			-
Other changes in fair value		(3	)		-			-			(54	)		(115	)
Fair value ending balance	$	1,122,415		$	1,429,245		$	1,481,727		$	1,500,337		$	1,495,215			(21	)%		(25	)%
Second Liens
Fair value beginning balance	$	28,747		$	27,608		$	25,710		$	24,091		$	18,851			4	%		52	%
Addition of mortgage servicing rights		-			3,587			3,997			3,998			3,931
Reductions due to loan payments		(2,097	)		(2,559	)		(2,169	)		(2,378	)		(1,716	)
Changes in fair value due to:
Changes in valuation model inputs
or assumptions (a)		(834	)		32			67			(1	)		2,411
Other changes in fair value		16			79			3			-			614
Fair value ending balance	$	25,832		$	28,747		$	27,608		$	25,710		$	24,091			(10	)%		7	%
HELOC
Fair value beginning balance	$	12,597		$	13,631		$	13,994		$	14,636		$	15,130			(8	)%		(17	)%
Addition of mortgage servicing rights		174			87			791			1,041			1,028
Reductions due to loan payments		(736	)		(1,124	)		(1,154	)		(1,683	)		(1,385	)
Changes in fair value due to:
Changes in valuation model inputs
or assumptions (a)		(462	)		(39	)		-			-			(1	)
Other changes in fair value		-			42			-			-			(136	)
Fair value ending balance	$	11,573		$	12,597		$	13,631		$	13,994		$	14,636			(8	)%		(21	)%
Total Consolidated
Fair value beginning balance	$	1,470,589		$	1,522,966		$	1,540,041		$	1,533,942		$	1,498,341			(3	)%		(2	)%
Addition of mortgage servicing rights		67,474			100,758			105,338			89,746			91,265
Reductions due to loan payments		(43,763	)		(52,647	)		(65,984	)		(65,759	)		(70,038	)
Reductions due to sale		(96,502	)		-			-			-			-
Changes in fair value due to:
Changes in valuation model inputs
or assumptions (a)		(237,991	)		(100,609	)		118,115			(17,834	)		14,011
Reclassification to trading assets		-			-			(174,547	)		-			-
Other changes in fair value		13			121			3			(54	)		363
Fair value ending balance	$	1,159,820		$	1,470,589		$	1,522,966		$	1,540,041		$	1,533,942			(21	)%		(24	)%

* Amount is less than one percent.

(a) Principally reflects changes in discount rates and prepayment speed assumptions, mostly due to changes in interest rates.

14

ASSET QUALITY HIGHLIGHTS
Quarterly, Unaudited
																4Q07 Change vs.
(Thousands)	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06
Allowance for Loan Losses
Beginning Reserve	$	236,611		$	229,919		$	220,806		$	216,285		$	206,829			3	%		14	%
Provision		156,519			43,352			44,408			28,486			22,983			261	%		581	%
Divestitures/acquisitions/transfers		4			(5,276	)		(12,326	)		2,655			-		NM			NM
Charge-offs		(54,891	)		(35,858	)		(26,493	)		(29,665	)		(16,535	)		53	%		232	%
Recoveries		4,098			4,474			3,524			3,045			3,008			(8	)%		36	%
Ending Balance	$	342,341		$	236,611		$	229,919		$	220,806		$	216,285			45	%		58	%
Reserve for off-balance sheet commitments	$	10,726		$	9,002		$	10,494		$	9,406		$	9,378			19	%		14	%
Total of allowance for loan losses and reserve
for off-balance sheet commitments	$	353,067		$	245,613		$	240,413		$	230,212		$	225,663			44	%		56	%
Non-Performing Assets
Retail/Commercial Banking
Nonperforming loans	$	283,290		$	189,798		$	128,025		$	73,620		$	82,837			49	%		242	%
Foreclosed real estate		57,749			37,796			36,635			35,388			31,230			53	%		85	%
Total Retail/Commercial Banking		341,039			227,594			164,660			109,008			114,067			50	%		199	%
Mortgage Banking
Nonperforming loans - held for sale		23,797			18,508			12,484			10,347			10,793			29	%		120	%
Foreclosed real estate		27,591			22,250			16,953			16,569			14,168			24	%		95	%
Total Mortgage Banking		51,388			40,758			29,437			26,916			24,961			26	%		106	%
Total nonperforming assets	$	392,427		$	268,352		$	194,097		$	135,924		$	139,028			46	%		182	%
Other
Loans past due 90 days or more (a)	$	241,509		$	206,660		$	171,027		$	169,840		$	167,192			17	%		44	%
Guaranteed portion of loans past due
90 days or more (a)		190,899			158,780			130,858			123,461			128,869			20	%		48	%
Foreclosed real estate from GNMA loans		18,642			15,610			13,910			16,655			18,121			19	%		3	%
Period-end loans, net of unearned
income (millions)	$	22,104		$	21,973		$	22,382		$	22,268		$	22,105			1	%		*
Insured loans		913			928			987			847			730			(2	)%		25	%
Loans excluding insured loans	$	21,191		$	21,045		$	21,395		$	21,421		$	21,375			1	%		(1	)%
Off-balance sheet commitments (millions) (b)	$	6,929		$	7,106		$	7,202		$	7,586		$	7,587			(2	)%		(9	)%
Nonperforming Loans by Product
Nonperforming loans:
Commercial	$	17,024		$	22,557		$	22,394		$	27,500		$	36,716			(25	)%		(54	)%
Commercial real estate		5,174			2,726			2,700			1,673			1,650			90	%		214	%
Homebuilder/condominium construction		134,995			86,470			37,798			9,279			13,000			56	%		938	%
Total commercial		157,193			111,753			62,892			38,452			51,366			41	%		206	%
Retail real estate		10,347			8,789			8,982			5,930			6,497			18	%		59	%
One-time close		115,750			69,256			56,151			29,238			24,974			67	%		363	%
Total retail		126,097			78,045			65,133			35,168			31,471			62	%		301	%
Total loans	$	283,290		$	189,798		$	128,025		$	73,620		$	82,837			49	%		242	%
Net Charge-offs by Product
Net charge-offs:
Commercial	$	2,581		$	10,090		$	7,766		$	13,911		$	6,783			(74	)%		(62	)%
Commercial real estate		226			398			210			10			83			(43	)%		172	%
Homebuilder/condominium construction		20,647			4,964			1,263			1,956			33			316	%	NM
Total commercial		23,454			15,452			9,239			15,877			6,899			52	%		240	%
Retail real estate		12,476			6,917			7,575			6,115			3,494			80	%		257	%
One-time close		11,413			6,207			3,581			2,324			682			84	%	NM
Retail non-real estate		3,450			2,808			2,574			2,304			2,452			23	%		41	%
Total retail		27,339			15,932			13,730			10,743			6,628			72	%		312	%
Total loans	$	50,793		$	31,384		$	22,969		$	26,620		$	13,527			62	%		275	%

(a) Includes loans held for sale.

(b) Amount of off-balance sheet commitments for which a reserve has been provided.

NM - Not meaningful

* Amount is less than one percent.

15

ASSET QUALITY HIGHLIGHTS
Quarterly, Unaudited
																4Q07 Change vs.
(Thousands)	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07	4Q06
FHN Consolidated
Nonperforming loans ratio (a)		1.28	%		.86	%		.57	%		.33	%		.37	%
Nonperforming assets ratio (b)		1.66			1.13			.81			.56			.58
Allowance to total loans		1.55			1.08			1.03			.99			.98
Allowance to loans excluding insured loans		1.62			1.12			1.07			1.03			1.01
Allowance to nonperforming loans (c)		120.84			124.66			179.59			299.93			261.10
Allowance to nonperforming assets (d)		92.87			94.70			126.60			175.83			168.66
Net charge-off ratio (e)		.93			.57			.41			.48			.25
Coverage ratio (f)		1.68x			1.88x			2.50x			2.07x			4.00x
Retail/Commercial Banking
Nonperforming assets ratio (b)		1.57	%		1.05	%		.75	%		.50	%		.52	%
Allowance to nonperforming assets		100.38			103.96			139.63			202.56			189.61
Mortgage Banking
Nonperforming assets ratio (g)		.05	%		.04	%		.03	%		.03	%		.02	%
Asset Quality Metrics
C&I Portfolio
30+ (accruing del.)		.50	%		.41	%		.66	%		.50	%		.50	%
NPLs		.24			.33			.31			.45			.55
Charge-Offs (qtd ann.)		.20			.57			.45			.55			.40
Consumer Real Estate (Home Equity) Portfolio
30+ (accruing del.)		1.46	%		1.14	%		1.07	%		1.01	%		1.06	%
NPLs		.12			.11			.10			.07			.07
Charge-Offs (qtd ann.)		.60			.33			.36			.29			.22
Homebuilder Portfolio
30+ (accruing del.)		3.56	%		1.25	%		1.96	%		.82	%		.83	%
NPLs		6.43			3.93			1.67			.41			.59
Charge-Offs (qtd ann.)		3.82			.89			.22			.35			.02
One-Time Close (OTC) Portfolio
30+ (accruing del.)		2.50	%		1.91	%		1.08	%		1.73	%		.85	%
NPLs		5.68			3.21			2.60			1.41			1.21
Charge-Offs (qtd ann.)		2.18			1.16			.68			.45			.23

NM - Not meaningful

(a)  Ratio is nonperforming loans in the loan portfolio to total loans

(b)  Ratio is nonperforming assets related to the loan portfolio to total loans plus foreclosed real estate and other assets

(c)  Ratio is allowance to nonperforming loans in the loan portfolio

(d)  Ratio is allowance to nonperforming assets related to the loan portfolio

(e)  Ratio is annualized net charge-offs to average total loans

(f)   Ratio is allowance to annualized net charge-offs

(g)  Ratio is nonperforming assets to unpaid principal balance of servicing portfolio

16

ASSET QUALITY HIGHLIGHTS: KEY PORTFOLIOS
Unaudited
C&I Portfolio: $7.1 Billion (32% of Total Loans)
	- Performing well and as expected
	- Expecting some impact from residential real estate-related and other, broader economic issues
	- Diverse and granular portfolio
	- Mostly relationship customers in TN and regional middle market lending efforts
	- Subject to quarterly "lumpiness" from individual credits
Consumer Real Estate (primarily Home Equity) Portfolio: $8.6 Billion (39% of Total Loans)
	- Performance shows deterioration in Q4 primarily related to higher risk markets
	- Geographically diverse
	- Top States (TN= 29%, CA = 13%, VA = 4%, WA = 4%, MD = 4%, FL = 3%)
	- Strong borrower quality
	- 752 avg. origination FICO; 729 avg. portfolio FICO (refreshed)
	- Good collateral position
	- High LTV loans managed through whole loan insurance
	- 84% of uninsured portfolio <90 CLTV
	- 16% of uninsured portfolio is HLTV, 64% of which (or 10.4%) have FICO>700
	- No longer originating loans>89.9% CLTV
	- Good borrower capacity (36% avg. DTI)
	- Primarily retail-sourced (85% retail)
	- Mix of older vintage loans
	- 59% originated prior to 2006

As of  Dec. 31,  2007
Homebuilder Portfolio: $2.1 Billion (9% of Total Loans)		Top 10 States
			% OS	% NPL
	- Loans to residential builders and developers	TN	19%	2%
	- Geographically diverse	FL	13%	34%
	- Performance under pressure from housing market (oversupply & lack of mortgage availability)	WA	9%	0%
	- Most severe market conditions in Florida, California, Virginia/DC, Nevada, Arizona, and Georgia/Atlanta	CA	9%	15%
	- Condominium construction balances relatively small ($291 million) but individual commitments tend to be larger on average	TX	6%	2%
	- Land exposure has been reduced	NC	5%	1%
	- Managing existing relationships (shrinking business into 2008)	VA	4%	11%
	- Devoting additional resources to manage problem loans	MD	4%	0%
		GA	4%	4%
		CO	4%	6%
		As of 12/31/07
One-Time Close (OTC) Portfolio: $2.0 Billion (9% of Total Loans)		Top 10 States
			% OS	% NPL
	- Construction-to-perm loans to consumers	CA	21%	29%
	- Performance under pressure from housing market, borrower stress	TX	14%	10%
	and lack of product salability in the secondary market	UT	8%	2%
	- Aggressively managing weakening credits	ID	8%	10%
	- Significant changes to business (shrinking business into 2008)	WA	7%	2%
	- More equity required, higher FICOs, tighter underwriting processes and guidelines	AZ	5%	3%
	- Higher risk product structures have been discontinued (represent 24% of commitments but 75% of losses in 2007)	FL	4%	23%
	- Geographically diverse	OR	4%	3%
	- Good borrower quality overall - problems are geographically concentrated	VA	2%	4%
	- 72% have FICO>700	MD	2%	1%
		As of 12/31/07

17

BUSINESS SEGMENT HIGHLIGHTS
Quarterly, Unaudited
																	4Q07 Change vs.
(Thousands)	4Q07			3Q07			2Q07			1Q07			4Q06				3Q07			4Q06
Retail/Commercial Banking
Total revenues(a)	$	302,527		$	314,976		$	324,545		$	327,075		$	343,294				(4	)%		(12	)%
Provision for loan losses		156,473			43,349			36,847			28,493			23,263				261	%		573	%
Noninterest expenses		197,865			193,269			206,217			198,195			211,509				2	%		(6	)%
Pre-tax (loss)/income		(51,811	)		78,358			81,481			100,387			108,522			NM			NM
(Benefit)/provision for income taxes		(12,631	)		27,792			22,774			30,258			33,682			NM			NM
Net (loss)/income from continuing operations		(39,180	)		50,566			58,707			70,129			74,840			NM			NM
Income from discontinued operations, net of tax		4,137			209			179			240			187			NM			NM
Net (loss)/income	$	(35,043	)	$	50,775		$	58,886		$	70,369		$	75,027			NM			NM
Mortgage Banking
Total revenues(a)	$	(88,470	)	$	62,748		$	99,320		$	94,077		$	112,419			NM			NM
Provision for loan losses		46			3			(111	)		(7	)		(280	)		NM			NM
Noninterest expenses		174,293			108,580			115,565			105,331			108,925				61	%		60	%
Pre-tax (loss)/income		(262,809	)		(45,835	)		(16,134	)		(11,247	)		3,774				473	%	NM
(Benefit)/provision for income taxes		(102,598	)		(16,612	)		(8,493	)		(11,782	)		319				518	%	NM
Net (loss)/income	$	(160,211	)	$	(29,223	)	$	(7,641	)	$	535		$	3,455				448	%	NM
Capital Markets
Total revenues(a)	$	101,224		$	59,678		$	86,552		$	83,092		$	92,634				70	%		9	%
Noninterest expenses		80,265			67,339			73,846			79,726			84,075				19	%		(5	)%
Pre-tax income/(loss)		20,959			(7,661	)		12,706			3,366			8,559			NM				145	%
Provision/(benefit) for income taxes		7,860			(2,957	)		4,741			1,217			3,180			NM				147	%
Net income/(loss)	$	13,099		$	(4,704	)	$	7,965		$	2,149		$	5,379			NM				144	%
Corporate
Total revenues(a)	$	3,693		$	3,877		$	9,314		$	16,363		$	13,994				(5	)%		(74	)%
Provision for loan losses		-			-			7,672			-			-				-			-
Noninterest expenses (b)		109,136			52,434			61,612			19,760			27,121				108	%		302	%
Pre-tax loss		(105,443	)		(48,557	)		(59,970	)		(3,397	)		(13,127	)			117	%		703	%
Income tax benefit		(38,973	)		(17,553	)		(22,883	)		(891	)		(5,733	)			122	%		580	%
Net loss	$	(66,470	)	$	(31,004	)	$	(37,087	)	$	(2,506	)	$	(7,394	)			114	%		799	%
Total Consolidated
Total revenues(a)	$	318,974		$	441,279		$	519,731		$	520,607		$	562,341				(28	)%		(43	)%
Provision for loan losses		156,519			43,352			44,408			28,486			22,983				261	%		581	%
Total noninterest expenses		561,559			421,622			457,240			403,012			431,630				33	%		30	%
Pre-tax (loss)/income		(399,104	)		(23,695	)		18,083			89,109			107,728			NM			NM
(Benefit)/provision for income taxes		(146,342	)		(9,330	)		(3,861	)		18,802			31,448			NM			NM
Net (loss)/income from continuing operations		(252,762	)		(14,365	)		21,944			70,307			76,280			NM			NM
Income from discontinued operations, net of tax		4,137			209			179			240			187			NM			NM
Net (loss)/income	$	(248,625	)	$	(14,156	)	$	22,123		$	70,547		$	76,467			NM			NM

Certain previously reported amounts have been reclassified to agree with current presentation.

(a) Includes noninterest income and net interest income/(expense)

(b) See page 4 for further details of current quarter impacts.

NM - Not meaningful

* Amount is less than one percent.

18

RETAIL/COMMERCIAL BANKING
Quarterly, Unaudited
																4Q07 Change vs.
(Thousands)	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06
Income Statement
Net interest income	$	208,943		$	219,579		$	217,896		$	224,116		$	228,955			(5	)%		(9	)%
Noninterest income		93,584			95,397			106,649			102,959			114,339			(2	)%		(18	)%
Total revenue		302,527			314,976			324,545			327,075			343,294			(4	)%		(12	)%
Total noninterest expense		197,865			193,269			206,217			198,195			211,509			2	%		(6	)%
Provision		156,473			43,349			36,847			28,493			23,263			261	%		573	%
Pretax (loss)/income	$	(51,811	)	$	78,358		$	81,481		$	100,387		$	108,522			(166	)%		(148	)%
Efficiency ratio		65.40	%		61.36	%		63.54	%		60.60	%		61.61	%
Balance Sheet
Average loans (millions)	$	21,312		$	21,773		$	21,904		$	21,592		$	21,471			(2	)%		(1	)%
Other earning assets (millions)		1,015			685			585			557			413			48	%		146	%
Total earning assets (millions)		22,327			22,458			22,489			22,149			21,884			(1	)%		2	%
Total deposits (millions)	$	12,196		$	12,181		$	12,156		$	12,143		$	12,085			*			1	%
Net interest margin		3.71	%		3.88	%		3.89	%		4.10	%		4.15	%
Noninterest Income Detail
Deposit transactions & cash mgmt	$	47,959		$	44,855		$	43,067		$	39,344		$	43,299			7	%		11	%
Insurance commissions		7,486			6,508			7,863			9,586			8,912			15	%		(16	)%
Trust services & investment mgmt		10,137			9,972			10,671			9,733			10,469			2	%		(3	)%
Bankcard Income		5,867			5,986			6,007			5,701			6,079			(2	)%		(3	)%
Other service charges		4,847			4,939			5,496			5,460			5,014			(2	)%		(3	)%
Check clearing fees		1,126			1,275			1,284			1,212			1,386			(12	)%		(19	)%
Revenue from loan sales and
securitizations (a)		(171	)		4,049			7,680			8,522			13,886			(104	)%		(101	)%
Miscellaneous revenue		16,333			17,813			24,581			23,401			25,294			(8	)%		(35	)%
Total noninterest income	$	93,584		$	95,397		$	106,649		$	102,959		$	114,339			(2	)%		(18	)%
Key Statistics
Regional Banking (b)
Average loans (millions)	$	10,638		$	11,130		$	11,007		$	10,862		$	10,688			(4	)%		*
Total deposits (millions)		11,548			11,464			11,430			11,407			11,328			1	%		2	%
Net interest margin		4.88	%		5.00	%		5.01	%		5.17	%		5.21	%
National Specialty Banking (c)
Average loans (millions)	$	10,674		$	10,643		$	10,897		$	10,730		$	10,783			*			(1	)%
Total deposits (millions)		648			717			726			736			757			(10	)%		(14	)%
Net interest margin		2.55	%		2.77	%		2.80	%		3.06	%		3.13	%
Locations
Full-Service Financial Centers		216			233			233			231			229			(7	)%		(6	)%
First Tennesee		197			199			199			199			197			(1	)%		*
First Horizon Bank		19			34			34			32			32			(44	)%		(41	)%
Trust Assets
Total assets (millions)(d)	$	12,300		$	12,954		$	12,954		$	12,878		$	12,472			(5	)%		(1	)%
Total managed assets (millions)(d)		5,880			6,645			6,811			6,700			6,546			(12	)%		(10	)%

NM - Not meaningful

* Amount is less than one percent.

Certain previously reported amounts have been reclassified to agree with current presentation.

(a) Includes gains from whole-loan sales and net revenue from asset securitizations

(b) Regional Banking includes First Tennessee Bank, First Horizon Banks and Middle Market Lending

(c) National Specialty Banking includes Consumer Lending, Construction Lending, Emerging Businesses & Correspondent Banking

(d) Current quarter is an estimate

19

MORTGAGE BANKING
Quarterly, Unaudited
																4Q07 Change vs.
(Thousands)	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06
Income Statement
Net interest income	$	14,185		$	20,590		$	24,353		$	17,343		$	20,857			(31	)%		(32	)%
Noninterest income
Net origination fees		5,008			(17,494	)		67,281			63,641			69,230			(129	)%		(93	)%
Net servicing fees		(118,107	)		49,738			(3,496	)		3,008			11,826			(337	)%	NM
Other fees		10,444			9,914			11,182			10,085			10,506			5	%		(1	)%
Total noninterest income		(102,655	)		42,158			74,967			76,734			91,562			(344	)%		(212	)%
Total revenue		(88,470	)		62,748			99,320			94,077			112,419			(241	)%		(179	)%
Noninterest expense**		174,293			108,580			115,565			105,331			108,925			61	%		60	%
Provision		46			3			(111	)		(7	)		(280	)	NM			NM
Pretax (loss)/income	$	(262,809	)	$	(45,835	)	$	(16,134	)	$	(11,247	)	$	3,774			473	%	NM
Efficiency ratio		(197.01	%)		173.04	%		116.36	%		111.96	%		96.89	%
Balance Sheet
Warehouse (millions)	$	2,672		$	3,311		$	3,531		$	3,030		$	3,124			(19	)%		(14	)%
Other earning assets (millions)		981			1,007			995			796			825			(3	)%		19	%
Total earning assets (millions)	$	3,653		$	4,318		$	4,526		$	3,826		$	3,949			(15	)%		(7	)%
Escrow balances  (millions)	$	1,709		$	1,894		$	2,032		$	1,858		$	2,000			(10	)%		(15	)%
Net interest margin		1.54	%		1.89	%		2.16	%		1.84	%		2.10	%
Warehouse Spread		1.54	%		1.34	%		1.14	%		1.12	%		1.24	%
Noninterest Expense Detail
Commissions & incentives	$	39,359		$	45,112		$	50,660		$	44,984		$	47,428
FAS 91 cost deferral		(3,878	)		6,392			(3,832	)		(1,816	)		(1,131	)
Other salaries & benefits		38,727			49,147			55,408			51,882			56,462
Total salaries & benefits		74,208			100,651			102,236			95,050			102,759			(26	)%		(28	)%
Contract labor & outsourcing		1,968			2,941			2,468			2,574			3,103
Equipment & occupancy		14,814			17,177			16,639			17,221			17,362
Foreclosure provision		4,872			(241	)		2,225			1,611			1,042
Other expenses		120,155			44,327			50,602			40,714			38,525
Total expenses before FAS 91 reclass		216,017			164,855			174,170			157,170			162,791			31	%		33	%
FAS 91 reclassification***		(46,133	)		(61,505	)		(62,996	)		(56,343	)		(57,575	)
Total noninterest expense before
segment allocations		169,884			103,350			111,174			100,827			105,216
Segment allocations		4,409			5,230			4,391			4,504			3,709
Total noninterest expense	$	174,293		$	108,580		$	115,565		$	105,331		$	108,925			61	%		60	%

NM - Not meaningful

* Amount is less than one percent.

** 4Q07 includes $71.1 million of goodwill impairment

*** See Glossary of Terms

Certain previously reported amounts have been reclassified to agree with current presentation.

20

MORTGAGE BANKING: ORIGINATION INCOME
Quarterly, Unaudited
																4Q07 Change vs.
(Thousands)	4Q07			3Q07			2Q07			1Q07			4Q06			3Q07			4Q06
Origination Income
Origination fees	$	47,789		$	56,042		$	68,609		$	58,755		$	63,255
FAS 91 fee deferral		(4,818	)		5,563			(2,436	)		(1,016	)		(225	)
Appraisal, final inspection,
credit report fees		5,387			6,864			7,860			6,544			6,840
Total origination fees		48,358			68,469			74,033			64,283			69,870			(29	)%		(31	)%
Secondary marketing income
Prime
OMSR, SRP		66,443			96,527			98,072			76,821			68,373
Marketing G/L (Trading Gains)		(17,247	)		(57,655	)		13,435			17,728			25,897
Concessions		(26,174	)		(49,551	)		(45,609	)		(34,350	)		(33,293	)
LOCOM		(17,631	)		(11,530	)		(6,880	)		(2,519	)		(1,629	)
Subtotal Prime		5,391			(22,209	)		59,018			57,680			59,348		NM				(91	)%
Non-Prime
OMSR, SRP		14			87			(710	)		331			2,264
LOCOM		(1,178	)		(2,976	)		(1,604	)		(553	)		(2,164	)
Recourse Provision*		(1,444	)		640			(460	)		(1,757	)		(2,513	)
Subtotal Non-Prime		(2,608	)		(2,249	)		(2,774	)		(1,979	)		(2,413	)		16	%		8	%
Total Secondary Marketing income		2,783			(24,458	)		56,244			55,701			56,935		NM				(95	)%
FAS 91 Reclassification		(46,133	)		(61,505	)		(62,996	)		(56,343	)		(57,575	)		(25	)%		(20	)%
Total Origination Income		5,008			(17,494	)		67,281			63,641			69,230		NM				(93	)%
Margins
Marketing margin on deliveries (bps):
OMSR, SRP		121			131			132			127			113
Marketing G/L (Trading Gains)		(31	)		(78	)		18			29			41
Concessions		(48	)		(67	)		(62	)		(57	)		(53	)
LOCOM		(34	)		(20	)		(12	)		(5	)		(6	)
Recourse Provision*		(3	)		1			-			(2	)		(4	)
Total Marketing Margin on Deliveries		5			(33	)		76			92			91

NM - Not meaningful

*Represents the reclassification from expense to secondary marketing income of expected loss provisions related to the recourse obligation on sales of non-prime loans.

21

MORTGAGE BANKING: ORIGINATION METRICS
Quarterly, Unaudited
																	4Q07 Change vs.
($ in millions)	4Q07			3Q07			2Q07			1Q07			4Q06				3Q07			4Q06
Production
First lien production	$	6,308		$	6,672		$	8,092		$	6,302		$	6,417				(5	)%		(2	)%
Breakdown by Product Type
Prime
Conventional Fixed		63	%		58	%		56	%		53	%		49	%
Conventional ARM		3	%		5	%		3	%		3	%		4	%
Jumbo Fixed		6	%		7	%		9	%		9	%		8	%
Jumbo ARM		3	%		6	%		8	%		6	%		7	%
Alt A		6	%		12	%		14	%		20	%		22	%
Government		17	%		9	%		7	%		7	%		7	%
Non Prime		-			-			1	%		2	%		2	%
Other		2	%		3	%		2	%		-			1	%
Breakdown by Payment Type
Fully amortizing		89	%		78	%		71	%		70	%		70	%
Interest only - fixed		7	%		13	%		18	%		20	%		14	%
Interest only - ARM		4	%		9	%		11	%		10	%		15	%
Option ARM's		-			-			-			-			1	%
Production Refinanced %		47	%		31	%		38	%		45	%		44	%
Production Purchased %		53	%		69	%		62	%		55	%		56	%
ARMs % (Excluding Gov't ARMS)		6	%		13	%		15	%		14	%		21	%
Sales Force
Total Sales Force		1,696			2,124			2,508			2,486			2,440
Warehouse/Pipeline
Ending Warehouse Balance	$	2,971		$	2,083		$	2,950		$	2,527		$	2,347				43	%		27	%
Ending Pipeline Balance (Locked)		3,363			4,088			4,288			4,019			3,074				(18	)%		9	%
Loan Sales (Deliveries)
Prime		5,504			7,398			7,302			5,919			6,062				(26	)%		(9	)%
Non-Prime		-			1			55			134			192			NM			NM
Total Loan Sales		5,504			7,399			7,357			6,053			6,254				(26	)%		(12	)%

Definitions:
	Prime:	Mortgages made to borrowers who typically have good credit history, full documentation, and standard structures;
		"A" market conventional loans have limited credit and other risks.
Alt-A & GSE Expanded Approval:  Resembles prime mortgages but lack full documentation or have non-standard structures.
		They have more potential risks than prime, but less than non-prime mortgages.
	Non-Prime:	Mortgage loans made to borrowers who typically have derogatory information in their credit history;
		non-prime loans are also made to borrowers w/ acceptable credit history but have other non-standard loan features.
	Government:	FHA/VA loans that are eligible for GNMA securitizations and government guarantees.
NM - Not meaningful
* Amount is less than one percent.

22

MORTGAGE BANKING: SERVICING
Quarterly, Unaudited
																	4Q07 Change vs.
(Thousands)	4Q07			3Q07			2Q07			1Q07			4Q06				3Q07			4Q06
Servicing Income
Gross Service Fees	$	90,153		$	90,694		$	90,282		$	100,077		$	99,852
Guarantee Fees		(19,775	)		(19,312	)		(18,874	)		(18,570	)		(18,630	)
Sub-Service Fee Income		244			1			11			27			7
Lender Paid MI		(21	)		(9	)		(20	)		(2	)		(13	)
Net Service Fees		70,601			71,374			71,399			81,532			81,216				(1	)%		(13	)%
Early Payoff Interest Expense		(3,626	)		(3,409	)		(5,036	)		(4,749	)		(4,791	)
Ancillary Fees		9,192			8,696			7,509			7,951			7,521
Total Service Fees		76,167			76,661			73,872			84,734			83,946				(1	)%		(9	)%
Change in MSR Value - Runoff		(40,930	)		(48,963	)		(62,661	)		(61,698	)		(66,937	)			(16	)%		(39	)%
Net hedging results:
Change in MSR Value - Other than Runoff**		(234,998	)		(102,887	)		115,739			(17,138	)		10,351
MSR Hedge (Losses)/Gains		119,651			126,742			(116,955	)		8,773			(7,171	)
Change in Trading Asset Value**		(73,496	)		(24,046	)		28,003			(3,312	)		12
Trading Asset Hedge (Losses)/Gains		59,022			29,343			(35,790	)		1,226			(844	)
Option Expense on Servicing Hedges		(23,523	)		(7,112	)		(5,704	)		(9,577	)		(7,531	)
Total net hedging results		(153,344	)		22,040			(14,707	)		(20,028	)		(5,183	)		NM			NM
Total Servicing Income		(118,107	)		49,738			(3,496	)		3,008			11,826			NM			NM
Key Servicing Metrics (millions)
Beginning Servicing Portfolio	$	108,401		$	105,652		$	102,822		$	101,370		$	100,246
Additions to portfolio		6,399			6,484			7,778			6,237			6,333
Prepayments		(2,931	)		(2,829	)		(3,944	)		(3,645	)		(3,909	)
Amortization		(725	)		(707	)		(708	)		(696	)		(687	)
Service Release Sales		(166	)		(199	)		(296	)		(444	)		(613	)
Bulk Sale		(7,269	)		-			-			-			-
Ending Servicing Portfolio (Owned)	$	103,709		$	108,401		$	105,652		$	102,822		$	101,370				(4	)%		2	%
Avg. Servicing Portfolio (Owned)	$	107,259		$	107,073		$	104,208		$	101,992		$	100,811				*			6	%
Average Loans Serviced (#)		632,482			652,479			643,314			636,496			633,293				(3	)%		*
Portfolio Product Mix (Average)
GNMA		8	%		7	%		8	%		8	%		8	%
FNMA/FHLMC		65	%		65	%		64	%		64	%		64	%
Private		24	%		25	%		25	%		25	%		25	%
Sub-Total		97	%		97	%		97	%		97	%		97	%
Warehouse		3	%		3	%		3	%		3	%		3	%
Total		100	%		100	%		100	%		100	%		100	%
Other Portfolio Statistics
Net Service Fees - Annualized (bps)		26			27			27			32			32
Total Service Fees - Annualized (bps)		28			29			28			33			33
Ancillary Income per Loan (Annualized)	$	58.13		$	53.31		$	46.68		$	49.97		$	47.51				9	%		22	%
Servicing Cost per Loan (Annualized)	$	50.56		$	48.15		$	49.51		$	49.44		$	49.45				5	%		2	%
Average Servicing Asset (millions)***		1,353			1,465			1,371			1,505			1,452
Servicing Book Value (bps)		126			137			132			148			144
90+  Delinquency Rate, excluding foreclosures		1.48	%		1.18	%		.96	%		.87	%		.89	%
Change in MSR Asset /
Average Servicing Asset		46	%		7	%		19	%		19	%		18	%
Run-Off Rate - Annualized		14	%		13	%		18	%		17	%		18	%

NM - Not meaningful

* Amount is less than one percent.

** 4Q07 includes a portion of the $135 million valuation adjustment

*** Includes valuation reserve/MSRs only

Certain previously reported amounts have been reclassified to agree with current presentation.

23

CAPITAL MARKETS
Quarterly, Unaudited
																	4Q07 Change vs.
(Thousands)	4Q07			3Q07			2Q07			1Q07			4Q06				3Q07			4Q06
Income Statement
Interest income/(expense)	$	4,258		$	1,556		$	(6	)	$	(2,068	)	$	781				174	%		445	%
Incremental cost of equity		(3,932	)		(3,725	)		(3,859	)		(3,769	)		(4,260	)			6	%		(8	)%
Net interest income/(expense)		326			(2,169	)		(3,865	)		(5,837	)		(3,479	)		NM			NM
Noninterest income:
Fixed income		77,126			46,003			48,258			46,313			46,235				68	%		67	%
Other product revenue		23,772			15,844			42,159			42,616			49,878				50	%		(52	)%
Total noninterest income		100,898			61,847			90,417			88,929			96,113				63	%		5	%
Total revenue		101,224			59,678			86,552			83,092			92,634				70	%		9	%
Noninterest expense		80,265			67,339			73,846			79,726			84,075				19	%		(5	)%
Pretax income/(loss)	$	20,959		$	(7,661	)	$	12,706		$	3,366		$	8,559			NM				145	%
Efficiency ratio		79.29	%		112.84	%		85.32	%		95.95	%		90.76	%
Balance Sheet
Trading inventory (millions)	$	1,934		$	1,810		$	2,546		$	2,409		$	2,513				7	%		(23	)%
Other earning assets (millions)		1,600			1,261			1,442			1,633			1,889				27	%		(15	)%
Total earning assets (millions)	$	3,534		$	3,071		$	3,988		$	4,042		$	4,402				15	%		(20	)%

NM - Not meaningful

Certain previously reported amounts have been reclassified to agree with current presentation.

24

CORPORATE
Quarterly, Unaudited
																	4Q07 Change vs.
(Thousands)	4Q07			3Q07			2Q07			1Q07			4Q06				3Q07			4Q06
Income Statement
Net interest income/(expense)	$	2,740		$	6		$	1,255		$	1,930		$	(213	)		NM			NM
Net interest expense from
deferred compensation		(207	)		(202	)		(207	)		(133	)		(123	)			2	%		68	%
Total net interest income/(expense)		2,533			(196	)		1,048			1,797			(336	)
Noninterest income		13,269			3,547			1,677			3,028			3,140				274	%		323	%
Noninterest income from
deferred compensation		(1,667	)		526			7,603			1,265			8,188				(417	)%		(120	)%
Total noninterest income		11,602			4,073			9,280			4,293			11,328				185	%		2	%
Securities (losses)/gains, net		(10,442	)		-			(1,014	)		10,273			3,002			NM				(448	)%
Total revenue		3,693			3,877			9,314			16,363			13,994				(5	)%		(74	)%
Noninterest expense		109,958			51,291			49,706			17,391			16,806				114	%		554	%
Deferred compensation expense		(822	)		1,143			11,906			2,369			10,315				(172	)%		(108	)%
Total noninterest expense		109,136			52,434			61,612			19,760			27,121				108	%		302	%
Provision		-			-			7,672			-			-
Pretax loss	$	(105,443	)	$	(48,557	)	$	(59,970	)	$	(3,397	)	$	(13,127	)			117	%		703	%
NM - Not meaningful

Certain previously reported amounts have been reclassified to agree with current presentation.

25

CAPITAL HIGHLIGHTS
Quarterly, Unaudited
																	4Q07 Change vs.
(Dollars in millions, except per share amounts)	4Q07			3Q07			2Q07			1Q07			4Q06				3Q07			4Q06
Tier 1 Capital (a)	$	2,459.6		$	2,666.8		$	2,711.3		$	2,739.1		$	2,696.3				(8	)%		(9	)%
Tier 2 Capital (a)		1,400.5			1,321.4			1,316.2			1,324.0			1,320.1				6	%		6	%
Total Capital (a)	$	3,860.1		$	3,988.2		$	4,027.5		$	4,063.1		$	4,016.4				(3	)%		(4	)%
Risk-Adjusted Assets (a)	$	30,889.4		$	31,042.0		$	31,224.1		$	31,368.0		$	30,405.4				*			2	%
Tier 1 Ratio (a)		7.96	%		8.59	%		8.68	%		8.73	%		8.87	%
Tier 2 Ratio (a)		4.54			4.26			4.22			4.22			4.34
Total Capital Ratio (a)		12.50	%		12.85	%		12.90	%		12.95	%		13.21	%
Leverage Ratio (a)		6.64	%		7.12	%		7.00	%		7.15	%		6.94	%
Shareholders' Equity/Assets Ratio (b)		5.77			6.46			6.42			6.48			6.49
Tangible Equity/RWA (a)		6.04			6.75			6.86			6.91			6.96
Tangible Book Value	$	14.86		$	16.51		$	16.73		$	17.22		$	16.90
Book Value		16.83			19.08			19.43			19.88			19.61

NM - Not meaningful

* Amount is less than one percent.

(a)  Current quarter is an estimate

(b)  Calculated on period-end balances

26

GLOSSARY OF TERMS
Appraisal Fees:  A fee charged to the borrower for the cost of appraising a property.
Concessions:  The net amount of the discount or premium pricing charged to borrowers upon loan origination.  This also includes the servicing release premium paid to correspondents to purchase loans.  Discount pricing is used to competitively price mortgage loans.
Credit Report Fee:  A fee charged to the borrower for the cost of obtaining the borrower’s credit report.
FAS 91 Fee Deferral:  The timing difference between collecting and recognizing origination fees on a loan.  For loans held for sale, origination fees are recognized at the time the loan is sold, not at the time the loan is originated.
FAS 91 Reclassification:  The reclassification of the cost of originating the loans sold during the period.
Final Inspection Fee: A fee charged to the borrower to inspect a property.
Lower of Cost or Market (LOCOM):  A method of accounting for certain assets by recording them at the lower of their historical cost or their current market value.
Marketing G/L (Trading Gains):  The net result of hedging activities.
Originated Mortgage Servicing Rights (OMSR):  The retained right to service a mortgage loan when a mortgage loan is sold on a servicing-retained basis. Represents the present value of the amount by which the estimated future net cash flows from servicing mortgage loans exceeds the cost of servicing mortgage loans.
Origination Fees:  A fee charged to the borrower by the lender to originate a loan.  Usually stated as a percentage of the face value of the loan.
Servicing Released Premium (SRP):  The premium received for selling loans on a servicing released basis.
Tangible Equity/RWA: Shareholders' equity excluding intangible assets and unrealized gains/losses on available for sale securities and cash flow hedges divided by risk weighted assets.

27